Ethereum (ETH) has gained significant momentum recently, bolstered by a positive shift in market sentiment towards decentralized finance (DeFi) and an increasingly favorable regulatory environment with the incoming U.S. administration, according to LMAX strategist Joel Kruger.
On Friday, U.S.-listed spot Ethereum exchange-traded funds (ETFs) saw a record influx of capital, signaling a strong recovery for ETH as it plays catch-up with Bitcoin (BTC) after underperforming earlier this year.
In total, the nine Ethereum ETFs saw $332.9 million in net inflows during the shortened trading session, according to data from Farside Investors. The iShares Ethereum Trust (ETHA) from BlackRock and the Fidelity Ethereum Fund (FETH) led the charge, attracting $250 million and $79 million in new investments, respectively.
This marked the fifth consecutive session of inflows for the group and capped off a strong week with a total of $455 million in inflows, as reported by SoSoValue. The week was shorter due to U.S. markets being closed on Thanksgiving Thursday.
Ethereum ETFs have outpaced their Bitcoin counterparts, which saw $320 million in inflows on Friday but faced net outflows during the week.
After struggling to match Bitcoin’s performance in terms of price action and ETF flows this year, Ethereum has experienced a resurgence, driven in part by Donald Trump’s election victory, which reignited interest in altcoins and DeFi applications.
In addition to the surge in ETF inflows, open interest for CME ether ETF futures has reached all-time highs, nearing $3 billion, highlighting the growing institutional interest in Ethereum, according to CoinGlass data.
